It's Only 14 Days, But

I am heartened that federal district judge Araceli Martínez-Olguín has issued a 2 week injunction against the Paramont-Warner merger.

The only way this deal makes sense is through the extraction of monopoly rents, and they need those rents sooner rather than later.

With nepo-baby David Ellison's Paramount Skydance Corporation being largely dependent on his dad's Oracle wealth, and given that Oracle bonds are rapidly approaching junk bond status, any delay in the deal could both kill the deal and Paramount Skydance.

A federal judge on Monday ordered Paramount and Warner Bros Discovery to halt their $81bn merger for at least two weeks, allowing states that are challenging the deal more time to see their case through in court.

Twelve states, led by California, sued to block Paramount’s pending buyout of Warner last week – alleging that such a combination would “extinguish competition” in Hollywood and lead to fewer choices for consumers, particularly moviegoers and cable customers across the US.

The states’ top prosecutors called on Warner and Paramount to not close the transaction until after a court had time to “fully evaluate” their claims. And when the companies refused, they filed for a temporary restraining order – which is what district judge Araceli Martínez-Olguín granted on Monday. That opens the door to a potential preliminary injunction that the states are also seeking to effectively block the deal.

………

The temporary restraining order granted on Monday halts the deal from progressing for at least 14 days, although the pause could be extended for up to 28 days. The court has set 3 August as a date for a hearing on the states’ preliminary injunction motion, although that schedule could also be pushed back.

This does not appear to be anything more than a delay to allow for evidence to be presented and evaluated, but 14 days is better than no days.